Mercedes-Benz considers closing plants in Germany
By the AFREEQUE newsroom, based on Echorouk
Mercedes-Benz is considering closing some production sites in Germany and suspending new investment in the country to cut costs amid declining sales in China. Executives also mention future production of models exclusively abroad if German costs remain too high, reports Le Figaro.
Mercedes-Benz has suspended all new investment at its German sites until an agreement is reached on reducing production costs, as management negotiates new savings measures with employee representatives. Decisions on the next generation of vehicles have to be made now, increasing pressure on the talks, reports Le Figaro.
Negotiations are taking place notably with IG Metall, the German metalworkers' union, which is demanding a 5% pay rise. Britta Seeger, a member of the Mercedes-Benz management board, described the demand as “totally excessive” and said labour costs are already too high in Germany compared with international competitors, according to Le Figaro.
Mercedes-Benz is also relying on a “productivity offensive” to reduce costs. Michael Schiebe, also a member of the management board, said future models could be produced exclusively abroad if the carmaker failed to change its cost structure, reports Le Figaro.
